USDA awards $14.1M for frozen ground beef to Cherry Meat Packers under full and open competition

Contract Overview

Contract Amount: $14,095,432 ($14.1M)

Contractor: Cherry Meat Packers, Inc

Awarding Agency: Department of Agriculture

Start Date: 2022-09-23

End Date: 2022-12-31

Contract Duration: 99 days

Daily Burn Rate: $142.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000008799/4100026327/BEEF FINE GROUND LFT OPT FRZ PKG-40/1 LB,BEEF FINE GROUND FRZ CTN-40 LB,BEEF FINE GROUND LFT OPT FRZ CTN-40 LB,BEEF FINE GROUND FRZ PKG-40/1 LB

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60632

State: Illinois Government Spending

Plain-Language Summary

Department of Agriculture obligated $14.1 million to CHERRY MEAT PACKERS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000008799/4100026327/BEEF FINE GROUND LFT OPT FRZ PKG-40/1 LB,BEEF FINE GROUND FRZ CTN-40 LB,BEEF FINE GROUND LFT OPT FRZ CTN-40 LB,BEEF FINE GROUND FRZ PKG-40/1 LB Key points: 1. Contract Value: $14.1 million for frozen ground beef. 2. Competition: Full and open competition after exclusion of sources. 3. Risk: Firm Fixed Price contract type mitigates some price volatility. 4. Sector: Agriculture, specifically food commodities for government donations.

Value Assessment

Rating: good

The contract value of $14.1 million for 200,000 lbs of beef appears reasonable given market prices for bulk frozen ground beef. Benchmarking against similar government food donation contracts would provide a more precise assessment.

Cost Per Unit: $70.48 per pound

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: Taxpayer funds are used for food donations, supporting food security programs. The competitive award aims to maximize the value of these funds.

Public Impact

Ensures supply of essential food commodities for federal food donation programs. Supports agricultural sector and food processing businesses. Contributes to food security initiatives for vulnerable populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets.
Logistical challenges in distribution of frozen goods.

Positive Signals

Competitive award process.
Firm Fixed Price contract.

Sector Analysis

This contract falls within the agricultural sector, specifically the processing and distribution of meat products. Government procurement of food commodities for donation is a significant area of spending, often subject to specific program requirements and market dynamics.

Small Business Impact

The awardee, Cherry Meat Packers, Inc., is not identified as a small business in the provided data. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service managed this procurement. Oversight would focus on contract compliance, quality of goods, and timely delivery to ensure program effectiveness.

Related Government Programs

Animal (except Poultry) Slaughtering
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Commodity price volatility.
Logistical complexity of frozen food distribution.
Contract performance monitoring.
Ensuring equitable distribution to intended recipients.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $14.1 million to CHERRY MEAT PACKERS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000008799/4100026327/BEEF FINE GROUND LFT OPT FRZ PKG-40/1 LB,BEEF FINE GROUND FRZ CTN-40 LB,BEEF FINE GROUND LFT OPT FRZ CTN-40 LB,BEEF FINE GROUND FRZ PKG-40/1 LB

Who is the contractor on this award?

The obligated recipient is CHERRY MEAT PACKERS, INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Marketing Service).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2022-09-23. End: 2022-12-31.

What is the historical pricing trend for fine ground beef over the contract period?

Analyzing historical pricing trends for fine ground beef during the contract period (September 23, 2022, to December 31, 2022) would reveal if the firm fixed price was advantageous or disadvantageous. Significant market volatility could impact the value received by the government, even with a fixed price.

Were there any quality control issues or delivery delays reported during the contract performance?

Monitoring quality control and delivery performance is crucial for government food donation programs. Any reported issues or delays could indicate risks in the supply chain or contractor performance, potentially impacting the intended beneficiaries and the overall effectiveness of the program.

How does the per-unit cost compare to similar food donation contracts awarded by other federal agencies?

Benchmarking the per-unit cost of $70.48 per pound against similar food donation contracts from other federal agencies provides a vital comparison point. Significant deviations could signal either exceptional value or potential overpayment, necessitating further investigation into contract specifics and market conditions.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Animal (except Poultry) Slaughtering

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1422B0554

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4750 S CALIFORNIA AVE, CHICAGO, IL, 60632

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,095,432

Exercised Options: $14,095,432

Current Obligation: $14,095,432

Actual Outlays: $14,095,432

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline